Ashraf Eassa
Long/short equity, contrarian, independent research, tech

FalconStor Continues To Offer Poor Performance With A Side Of Lofty Promises

FalconStor (NASDAQ:FALC) is a name that I have been bearish on for quite some time, as I have believed that its core business is undergoing intense secular headwinds. The company's financial position continues to deteriorate, the business seems irreparable, and the take-over thesis has apparently completely dissipated as the company announced in its report that it has terminated its relationship with Wells Fargo (NYSE:WFC). Further, it appears that management misled investors with respect to a potential lawsuit that it appeared to have intended to file against the estate of former CEO ReiJane Huai. The report, as well as the earnings call, were complete disasters and I see little hope for this name going forward.

Strategic Alternatives...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details